JULIE LANE PHOTO | Superintendent Michael Hynes told the Board of Education Thursday night he might have to recommend cuts to stay within the state-imposed 2 percent tax cap.

With potential cuts in school aid amounting to close to $84,000, Superintendent Michael Hynes told Shelter Island Board of Education members, teachers and parents Thursday night he might have to recommend cuts in sports and co-curricular activities for the 2013-14 school year.  He described the potential loss of the state funds as “quite significant” in a budget that is already tight.

But he said those are hard conversations he isn’t prepared to have just yet, hoping that the New York State Legislature will succeed in restoring some, if not all of the state aid Governor Andrew Cuomo cut from his education proposal. Thursday night’s budget meeting was the first of at least three that are contemplated before Dr. Hynes and the Board of Education settle on a budget proposal to put before voters in May.

“We have things that are out of our control,” Dr. Hynes said, citing three major factors are contributing to increased costs. He expects a 10 percent increase in health insurance costs, amounting to an additional $300,000; an increase from 11.84 percent to 16.25 percent to pay for teachers’ pensions that amounts to an additional $141,000; and an increase from 18.7 percent to 21.1 percent for pension costs for other district employees that amounts to an additional $20,000.

The increases and the state-mandated 2 percent  tax cap make it “difficult to keep programs in place,” Dr. Hynes said. Last year, there were rumors that the state might reduce pension payments, but no action resulted, nor did the state provide relief from any mandates, Dr. Hynes said.

At the same time, he said he was determined the districts would be “doing more with less” in the year ahead.

All union contracts are in place for the year ahead and costs have been kept in check with an average 1.7 percent one-year increase and only a 2 percent increase over a two-year period, he said.

“We’ve done a very good job of curbing salaries,” Dr. Hynes said.